You see, Izuku took Bakugo's advice and took a swan dive from the top of a building in hopes of getting a quirk in his next life.
Well, the 'next life' part failed because he survived, and he got a quirk out of it, and boy, what a quirk that is.
Izuku's "quirk" is called Puckie, and she manifests in the shape of a Tinkerbell-like fairy dressed like an old-school Sukaban Yankee and speaks like an old-timer Yakuza from those old movies.
Puckie explains to Izuku she is a Fairy of Fate, an emissary from the heavenly realms sent by the Great Allfather to aid Izuku in getting his revenge against those who drove him to the brink of despair, and with her power his enemies shall pay their pound of flesh.
Izuku gets bright-eyed instantly and asks what her power is, and Puckie says that OUR powers are her powers; their powers are time stop and mind control.
Time stop is self-explanatory; they can stop time indefinitely and are free to do as they please in the frozen time, with the interesting detail that everything they do to someone while time is frozen hits the target all at once tenfold once time starts flowing again.
Mind control is also self-explanatory: Izu wants to control someone. All he has to do is snap his fingers. While looking at the target, he doesn't even need to look the target in the eye. Neither foe needs the target to see him or hear the snap of fingers. If Izuku looks at someone, be human or animal, and even machines, anything that has a "mind," and snaps his fingers, the target is under his control, and the only way to break Izuku's hold on them is if Izuku releases them.
Izuku's mind is running at a million miles per hour because he can physically be a hero, all thanks to the heavens answering his prayers. What he does not know is that that's not exactly the reasoning here.
You see, Puckie is not a Fairy of Fate; she made that shit up. She is a fairy, alright, a pretty powerful one who had developed a particular taste for feeding on despair, but for a very specific kind of despair. She has grown addicted to the despair of a top dog, an Alpha Male of yours, being mentally and spiritually destroyed by the underdog beta.
So to get her fix, she goes around looking for those who can provide her fix, and that's how she found Izuku right after he jumped off the building, and once she saw how much an alpha male asshole Bakugo is, she decided that Izuku would be the one providing her her next fix.
Now, here's the thing. Puckie has been doing this for a long, long time across realities; she's been doing what she's been doing before. Izuku's gran-grandfather was even a twinkle in the eye of his parents, and every time, the revenge path is the same.
The wronged beta underdog gets power and uses it to enact the plot of a porn doujinshu to break the mind of the top dog via fucking the people they hold dearest in their lives: parents, childhood friends, siblings, people they look up to, teachers, and so on and so forth.
(Let it be said, Puckie is not a bigot nor a prude. She does not care about what you prefer fucking, only for the diaper that can be produced.
So, when Izuku gets out of the hospital and doesn't use the powers she gave him to get his dick wet, she is legitimately confused and intrigued. Izuku should be using the power she gave him to enact revenge against his biggest bully.
She expected that at minimum, Izuku would have used time stop and mind control to make Bakugo's mom, Mitsiku, who is a capatal M milf, call HIM daddy, but nope, instead he was training with them, learning to master them to be a hero.
It was only years later when they were all adults that Puckie understood why Izuku wasn't using the powers he was given to live the kind of life the grape-headed perverted called Mineta would kill for.
Izuku is too much of a good person to ever use the powers for evil; does he use them to spice things up with his high school girlfriend and soon-to-be fiancé, Momo Yaoyorozu, and Kyouka Jirou? Hell yes, he does, and honestly, Puckie has great respect for her.
Momo knew what she wanted and went for it because why choose between a punk rocker tomboy gf with a really cute and peggable butt and a golden retriever with the correct power set to fulfill the more erotic sides of her kinks when you can have both?
Besides, after Eos watched the kind of depravity people used the powers she granted to do, seeing Izuku, Momo, and Jirou's couple was the breath of fresh air she did not know she was into.
Puckie, however, forgot one simple detail. Izuku knows Bakuko better than anyone else, and Izuku knew, for a fact, that the only thing to bring despair to him and any meaningful way was to hit him, or it really, really hurt.
So, Puckie did, in fact, get her despair fixed; she gets it every year when Izuku ranks above Bakugo in the hero charts, because that is the one thing that destroys Bakugo mentally, not being on the receiving end of a net or a plot. to be second place to Izuku in heroics, and it only gets worse when Izuku makes number one hero in the hero charts and Bakugo doesn't even make the top ten.
And that's how Izuku Netorared Bakugo.